In a shaky economy, what's your Plan B?
Posted at 6:00 AM on June 26, 2009
by Eric Ringham
(18 Comments)
Filed under: Economy
President Obama acknowledged this week that the unemployment rate was likely to pass 10 percent. We'd like to know about your backup plan.
If you've lost your job, or you're worried about it, what's your Plan B?
Travel. It's amazing how little money you really need when going through organizations like WWOOF. I just signed up. I'm 18 (just graduated) and taking a year off to see the west coast through it. -Ema Adams, Willmar, MN
My husband and I have a business we've been starting but have been unable to get investment funding thus far. Our Plan B - take the engineers we've hired and turn ourselves into a consulting firm while we continue to look for funding.I'm also looking for a job. I have a Ph.D. in Comparative Literature and right now teaching is hard to come by. I'm offering consulting to seniors writing their college application essays and looking into teaching online courses. -Elizabeth Wahl, Palo Alto, CA
My Plan B is to put 100% of my effort into my side business, Renavance LLC which licenses product ideas to other companies. It's difficult to leave the security of a job but not having an income would make the development of my business worth the time spent. -Atul Patel, Eden Prairie, MN
I'm living it! My HR Director position in a n-f-p was eliminated last fall. I was VERY lucky to find a 6 month temp HR job, but have been home for 3 months. I am volunteering my time with several organizations - some even doing HR. Between my husband (who is still working) and I, we have had 6 layoffs in the 20 years we've been out of college - so we have always budgeted for a layoff. Although the part of my income that unemployment compensation does not make up is sorely missed, we can pay our bills without touching our savings. That money is only for "real" emergencies. My plan's to volunteer to get out of the house & keep sanity, and network network network to find something soon! -Moira Webster, Burnsville, MN
Leaving the states for a 9-month adventure in New Zealand, hoping the economy is better when I get back. -@cjsinner
My "Plan B" has been in effect since 2/26/2009, when I was laid off by my employer 366 days after being sold to them in an outsourcing deal. Like many in the Information Technology field, I've watched outsourcing going on around me for 10 years. I've accumulated savings against this very possibility. I am pursing a two-pronged attack: getting additional training in the IT field, and looking for other opportunities, out of IT, which cannot be easily outsourced/offshored. -Steve Sacco, Saint Cloud, FL
My B/U plan: My work as a nurse practitioner is pretty secure since we are cost effective providers. If my husband's corporate job is cut, I'd work more and we'd cut out frills like the unlimited car wash and the fraud monitoring on our credit. -Dianne Willer, Lake Elmo, MN.
I am worried about losing my job, and I have thought a lot about it. My Plan B is to move back to Michigan where all my family lives, so I can get support from people who love me. Then, even though it's a worse economy there, look for a job. So many people have scattered families and I think that our society needs stronger families. I feel that strongly enough that I would move back. -Linda Witham, Olympia, WA
Cash out 401k and move to hawaii. -Todd, Bloomington, MN
Plan B? Oh, seriously now! You must be joking! We passed plan B a long time ago! I lost not just one but TWO jobs last year and I'm only slightly employed with an online writing position that brings in a few pennies a day while my hubby is putting off retirement for what -- two, three, five, twenty years -- maybe till he drops dead of exhaustion or I do, whichever comes first. But he can't stop working because then we'd have no health insurance and we & the grown kids & for awhile the much overgrown parents of hubby depended on his earnings &/or insurance for our insurance or moolah. Who bothers with plans anymore? That's all gone by the wayside. It's more by "skin of the teeth" now. -Diana Gaine, Greenville, TX
I have written a couple novels and I guess I would try harder to get them published. My job is iffy, and I suspect if I could get published, I would make enough not to have to worry about the economic downturn. As long as I paid the IRS what they want ;=) -Jeff Bray, Sioux Falls SD
My wife and I have some cash in the bank (not as much as we'd like), and as a web developer and nurse, we both have skills that are still in demand - our plan is to find another job if we have to... what else could we do? -Nick Benson, Eagan, MN
I just lost my business to the down economy, and I am scrambling for contracts to keep me afloat. Basically I am putting together a patchwork of whatever I can do, with the idea of working at a local grocery that offers health insurance as a fall-back. I am a professional with a Master's degree, but will work for $10/hour for health insurance & then work full time plus to pay the mortgage. That is the only Plan B I can think of. -Eva Schweber, Portland OR
I'm 26 and have only now figured out plan A when others are trying to work on Plan B, so I am worried that I will be fighting with Plan B people to get my nursing degree! -Jeanette Middleton, St. Paul, MN
Share your reply in the comments: What's your Plan B?
Comments (18)
I have been in a hard situation like others
live in california SF Bay Area and Lost all my
Savings Did not know what to do ..till a friend
come one day to my place and was so happy to see him,He Asked me if I have a plan B
I said no and he said would you like to have
one? absolutly I said, He show it to me and
trust me after 14 months My wife and I
in a very part time vases doing this6 hours a week
we will retire for the rest of our lives next month,,mony is there and time to travel if you like to Know email me I will be glad to help some one who nedds it joechairez@yahoo.com
P eople with Vissions !
L ive your Dreams !
A ct Now !
N ever Quit !
B Take Action Now !
Anthony.campitellijr@gmail.com
quiVangie@gmail.com
Tic Tac :)
Hello to all, I have been working for 16yrs in the hotel industry, and have always had in my mind, you always have to have a plan B, and some think that way, but do we take action,Well I found a plan B, please take control of your Life for your family and children, contact me for more details, sharing and building relations all around the world.
quivangie@gmail.com
Hello to all, I have been working for 16yrs in the hotel industry, and have always had in my mind, you always have to have a plan B, and some think that way, but to we take action,Well I found a plan B, please take control of your Life for your family and children, contact me for more details, sharing and building relations all around the world.
quivangie@yahoo.com
After being down-sized three years ago, I was lucky enough to find a similar job in a my field. However, my field is in manufacturing. When's the last time you bought something made in the USA? Now that I'm pushing 60, I fear that my "Plan B" is trying to smile while I say "Welcome to Wal-Mart!", holding a donation can for my medical insurance fund.
My plan B is to move where the work is even if that means leaving the family behind. Not exactly my desired choice but times as they are don't see what else I can do. In another month the money will run out and I will have to pack up and move.
I was laid off in Feb. 2009 where I worked for 14+ years as a Buyer for an aircraft manufacturer. My plan B was inspired by President Obama to go into a green business. I spent all my severence pay to get my business, Click Off The Grid, LLC, up and running where I match residential and commercial customers with solar and wind power suppliers. It's a unique idea but now here I am with no money left over to get people to my website. I need to come up with a plan C.
For the artist with IT training but no experience, it is doubtful you will initially get an IT job in this economy, but what you can do -- what I did, in fact -- was to get an office job which would allow me to transition to an IT position and which allowed me to work late to pursue this. It was very painful, but it worked. When possible, every job must be able to build on the skills you have demonstrated in a previous job but there always needs to be a first job to start from.
I've been lucky that I have been able to save 1/3 to 1/2 of my income for the past few years and because of lessons from earlier job losses I live at a level that is substantially below my current income - I just assume anything over $12/hour is going to be temporary and so that is how I live. Because of this I have an extended emergency fund that can last for quite some time.
I am also fortunate that in the IT field, so much software and training materials can be had for free or at a low cost. The time off would give me tremendous opportunities to ramp up my training and be more prepared for when the economy improves. I would also spend some time developing content for virtual worlds, something I do as a hobby right now.
Where is the discussion on recent grads and jobs?
My whole adult life has been "plan B." I got a degree in journalism/PR and ended up going into non-profit development work after college. When I burned out on that, I transitioned to start my own writing/communications business. After being hired full time by my biggest client (forcing me to work in a cubicle ... something *not* included in my "Plan B") I'm reinventing my professional self again as a Web writer/social networking specialist and working to transition myself into a social innovation expert.
"Plan B" can be scary, but taking opportunities when they're presented to you and having confidence that you *can* do it can bring wonderfully challenging opportunities. I'll probably still be reinventing myself at age 86.
I graduated in June 2008 with my degree in finance, and well before graduation it became apparent that finding a job was going to be very difficult. I began applying for the Peace Corps in February of 2008, and I am currently serving in Guatemala. I may not be making a much as some of my classmates, but it is a stable, secure, and extremely rewarding job!
I work as a temp and can therefore be laid off at any time (and that time is coming soon). My plan has been to save enough money so I don't have to worry about getting another job right away. I am lucky however as I am a single renter with a relatively low amount of debt. My other plan, if I don't find a job in a reasonable amount of time, is to go to South America and learn Spanish. Otherwise, it's back to the parents basement for me!
My wife and I both work for nonprofits. We keep our eye on job posting sites and continue to update our resumes and stay in touch with connections. This is important, but moving into something new takes time.
Last year we decided it was time to get serious about having a 3 month reserve as our Plan B. We calculated that to be $15,000 to cover both of us for 3 months or one of us for 6 months. It has been challenging, but we've stayed committed by socking away $1,200 every month in addition to our other savings. By the end of July we will have $10,000 for our three month reserve. In addition, we have maintained our other savings so we do not have to tap into that reserve if something sudden should arise.
I was laid off of my job in the arts last April and have pursuing my plan b in information technology. I have training and skill, but because I've not been working in IT for the last few years I have no experience and am therefore unemployable. Lack of experience always seems to be the first disqualifier for any job, but how are we to gain meaningful experience preparing for plan b, c, d, &c. when we're busy working plan a?
I currently develop e-learning for a large company, but have Special Ed teaching experience. I would think seriously about doing respite care for disabled children. I know it's a big need and takes some special skills & training that I possess.
"B" is working a second job that may turn into something if needed.
"C" is continuing training.
"D" is preparing to live on much less.
"E" um?
We have been living "plan b" since April 2008 when my husband's voluntary separation went into effect. We sold our house and many of our things and put the rest in storage. We then spent two months traveling in Europe and another month here in the U.S. visiting family and friends. Last September, we moved to St. Paul. I found a job pretty quickly and my husband started his own business.
Plan B helped us to do the things we've wanted to do...just gave us a little incentive!
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